Why are so many people in the market not optimistic about Ethereum?
You need to understand these key reasons:
1. V God's high-profile publicity did not bring good performance: Ethereum's founder V God frequently promoted Ethereum on X this year, but the price of the currency continued to fall. When a project party keeps touting but the price of the currency does not rise, it is often because the project party (Ethereum Foundation) is constantly selling ETH and plans to sell more.
2. The deflation problem is not solved: Ethereum's L2 expansion solution has absorbed a lot of liquidity, coupled with an annual increase of about 0.265%, the inflation problem is becoming increasingly serious. If the destruction mechanism of ETH cannot be effectively controlled, the miners' income will decline, and the on-chain ecology will be difficult to develop, the negative impact on the currency price will become greater and greater.
3. Grayscale ETHE selling pressure: Grayscale's ETHE selling pressure has always existed, and it will take time to digest this part of the selling pressure. It is difficult to see a breakthrough in the short term.
4. Pledge projects suck blood: Many pledge projects running on Ethereum are like "vampires", especially those proposals that lower the minimum threshold for validators. They are basically a means for large investors to reap the profits, and will eventually be transferred to retail investors.
